Savings Monitors

We conduct a field experiment in India to explore two interventions to help individuals to increase their savings balances. First, we design a financial product based on the popular business correspondent model, which includes frequent reminders, assistance in account opening, and the setting of a six-month savings goal. Second, we measure the effectiveness of adding a peer monitoring component to this basic bundle and test whether the local social network can help to increase the penetration of the formal banking system. We ask whether having a monitor substitutes for a formal commitment device, whether individuals choose the most effective monitors, and moreover, whether some community members are better than others at encouraging financial capability.